Allonge
An allonge is a separate sheet of paper attached to a promissory note that carries an endorsement transferring the note, used when there is no room on the note itself. Under the UCC, a paper affixed to the instrument is part of it.
How an allonge works
When a note is sold, the seller endorses it to the buyer ("Pay to the order of [buyer], without recourse") and signs. If the note has no room, or the parties prefer a clean original, the endorsement goes on an allonge that is firmly attached to the note. The Uniform Commercial Code treats a paper affixed to the instrument as part of it for an endorsement. State law and the buyer's custodian set the details, so follow their requirements.
Why it matters to a private lender
The endorsed original note (with any allonges) is the most important document in a sale: it is how ownership of the debt passes. A missing or detached allonge can delay settlement or enforcement.
On Lender Capital
A loan sold through Lender Capital moves with the endorsed note and a recorded assignment of the security instrument. On Lender Capital, private and hard money lenders sell whole, first-lien, business-purpose loans they originated and funded, performing or not (no seller-financed notes or land contracts): a capital partner buys the entire loan and the sale settles through an escrow agent. Lender Capital never lends or buys loans with its own money. See sell your loans.
Where Lender Capital fits
Lender Capital places first-lien, business-purpose real estate loans with capital partners. You apply once, then submit each loan with the full file. We send it only to capital partners whose criteria it fits, one partner funds the whole loan at closing and it is assigned to them. You keep your points (less the placement fee), earn the spread above the partner’s rate and service the loan. You pay a placement fee only when a loan funds.
Lender Capital is a business-to-business platform. This page is general information, not legal, tax or securities advice. Terms of warehouse lines and other funding sources vary by provider; confirm them with each provider and your counsel.